As a typical middle-class consumer, you are making monthly payments on your home mortgage (10% annual interest rate), car loan (12%), home improvement loan (14%), and past-due charge accounts (18%). Immediately after getting a $100 monthly raise, your friendly mutual fund broker tries to sell you some investment funds with a guaranteed return of 10% per year. Assuming that your only other investment alternative is a savings account, should you buy?

Answer rating: 100% (QA)

After getting a S10000 monthly raise the mutual fund store you work through attempted ... View the full answer